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प्रश्न
Attempt the following.
Demerits of Statutory Corporation.
उत्तर
Though statutory corporations are autonomous bodies and enjoy flexibility in their working, they have certain limitations which are as follows:
- Clashes amongst Interests: All or majority directors of Statutory Corporations are appointed by the Government from different fields. As there are many members it is quite possible that their interests may clash. The smooth functioning of the corporation may be hampered.
- Autonomy on Paper Only: Ministers, government officials, and political parties often interfere with the working and decision-making policies which affects the autonomy and flexibility of it.
- Rigid Structure: Though statutory corporation-have operational flexibility, they are subject to many rules and regulations. Any changes in the constitution, objects, powers, duties, etc., require amendments to be passed in the parliament which is a difficult task. This reduces its flexibility.
- Lack of Initiative: The statutory corporation has no profit motive. There is no competition between them. So employees do not take initiative to increase the profit.
- Unfair Practices: Before 1991, these corporations enjoyed a monopolistic and semi monopolistic position. They were charging high prices from the consumers to cover up their inefficiencies. After 1991, due to liberalization, most of them lost their monopolistic position but skill, in practice the lack of competition as they are not aware of consumer needs.
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संबंधित प्रश्न
Select the correct option and rewrite the sentence:
A statutory corporation is answerable to ___________ Or state assembly whosoever creates it.
Give one word/phrase/term.
An autonomous corporate body created by the Special Act of the parliament or state legislature with defined powers, functions, and duties.
Give one word/phrase/term.
An organisation which is answerable to parliament or state assembly whosoever creates it.
Give one word/phrase/term.
An organisation which 1s not subject to the budget, accounting and audit controls by the government.
Complete the sentence.
A ___________ has defined powers, functions and duties.
Answer in one sentence.
What is Statutory Corporation?
Correct the underlined word and rewrite the following sentence.
Statutory Corporation is a natural person created by special Acts.
Correct the underlined word and rewrite the following sentence.
A Statutory Corporation is not answerable to parliament or state assembly.
Explain the following term/concept.
Statutory Corporation.
Study the following case/situation and express your opinion.
A central government passes a statute in the parliament and forms a business organisation which is having autonomy in administration and this organisation is answerable to the legislature.
- Which type of organisation is this?
- Give any three Features of this organisation.
- Give anyone an example of this type of organisation.
Answer in brief.
State any four features of statutory corporation.
Justify the following statement.
There is no political interference in statutory corporations.
Attempt the following.
Merits of Statutory Corporation.
Answer the following in detail.
Explain Statutory Corporation and its features.
Answer the following in detail.
Explain merits and demerits of Statutory Corporation.
Match the pairs.
| Group A | Group B |
| A) BHEL | 1) Special Legislature |
| B) Statutory Corporation | 2) 49% paid up capital by govt. |
| C) Departmental Organisation | 3) Service Motive |
| D) Private Sector | 4) Railway |
| E) Public Sector | 5) Profit Motive |
| 6) 51% paid up capital by govt. |
Match the pairs.
| Group ‘A’ | Group ‘B’ | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. | ||
